Twoinandone, I agree with everything you wrote in this instance. The school has offered accommodations sufficient for graduation. Sometimes I am aware of lurkers or future readers and post something about policy for that reason rather than for the specific situation at hand and hope I didn’t create a tangent.
The real problem here is that being asked to take a leave seemed to have sent the daughter into a downward spiral. Perhaps those other circumstances contributed. If an agreement can be reached at a meeting, that the daughter can somehow be part of the peer group for the last month, perhaps she will be motivated to do the work.
If not, a GED and/or distance diploma can achieve graduation and she can be encourage to move on. But she appears to be a kid who could benefit from closure through a graduation ritual with her friends if that is at all possible.